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Technical Debt in AI Startups and Its Impact on Users

  • AI startups are currently relying on subsidized infrastructure providers to run their machine learning models.
  • Once these infrastructure providers shift to profit-seeking mode, the real cost of computation will surge, posing a financial burden on startups.
  • This technical debt, caused by deferred costs, puts both startups and their users at risk.
  • The impact of technical debt extends to VCs, potentially altering the economics of their investment strategies.

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